Q1 2025 MGIC Investment Corp Earnings Call Transcript
Key Points
- MGIC Investment Corp reported a strong net income of $186 million for the first quarter, with an annualized return on equity of 14.3%.
- The company successfully wrote $10 billion of new insurance during the quarter, maintaining a stable insurance in force of $294 billion.
- MGIC Investment Corp returned significant capital to shareholders, repurchasing 9.2 million shares for $224 million and paying a $33 million quarterly dividend.
- The company maintained a strong liquidity position with $824 million at the holding company by the end of the quarter.
- MGIC Investment Corp's reinsurance program reduced PMIERs required assets by $2.4 billion, enhancing capital efficiency and risk management.
- Market conditions have constrained growth in insurance in force, which is expected to persist throughout the year.
- The account-based delinquency rate increased by 15 basis points compared to a year ago, ending the quarter at 2.3%.
- MGIC Investment Corp experienced a pullback in market share, with some volatility in volume compared to peers.
- The company anticipates a potential increase in new delinquency notices due to the aging of the 2021 and 2022 book years.
- Operating expenses are expected to remain high, projected to be in the range of $195 million to $205 million for the full year.
Ladies and gentlemen, thank you for standing by, and welcome to the MGIC Investment Corporation first quarter 2025 earnings call. (Operator Instructions).
I will now turn the conference over to Dianna Higgins, Head of Investor Relations. Please go ahead.
Good morning, and welcome, everyone. Thank you for your interest in MGIC. Joining me on the call today to discuss our results for the first quarter are Tim Mattke, Chief Executive Officer; and Nathan Colson, Chief Financial Officer and Chief Risk Officer.
Our press release, which contains MGIC's first quarter financial results was issued yesterday and is available on our website at mtg.mgic.com under newsroom, includes additional information about our quarterly results that we will refer to during the call today. It also includes a reconciliation of non-GAAP financial measures to their most comparable GAAP measures.
In addition, we posted on our website a quarterly supplement that contains information
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